Do you have a cell tower and are facing an American Tower lease negotiation or cell tower lease buyout?

American Tower is one of the biggest cell tower operators in the U.S and is ranked 410 on the Fortune 500. It was founded 1995 with approximately 180,000 sites worldwide, with over 40,000 in the United States. Some of its main competitors include Crown Castle and SBA Communications.

Here are 3 common mistakes to avoid in order to maximize your opportunity with your American Tower lease negotiation. Please feel free contact us for your free consultation and expert advice.

1. Accepting The Wrong Terms In an American Tower Lease Extension or a Cell Tower Lease Buyout

The terms that are negotiated are very important.

Cell Tower Agreements Are Complex

A typical cell tower lease agreement has over 20 separate sections. A standard American Tower lease buyout has over 25 separate contract provisions. Unfortunately, most landlords do not negotiate these agreements the way that they should and end up accepting provisions that – with the right help – they would never have done so. Consequently, it can cost them greatly in time, expense and lost income.

Knowledge is Power

Have you ever heard the phrase, “you don’t know what you don’t know?” It is a simple way of saying that without the proper knowledge and experience, you will – undoubtedly – not know what you are missing. Having the correct knowledge provides for the ability to maximize a situation.

“Don’t Get the Short End of the Stick”

Have you ever hear the phrase, “don’t get the short end of the stick”? Without the right expertise, you can almost guarantee that – in a negotiation – this will be the likely result. The experts at Tower Advantage are here to protect our clients’ interests interests so that does not happen in your American Tower lease agreement negotiation.

2. Thinking That Since The Offer Is Better Than You Expect – You Do Not Need Any Help

Often times, property owners will receive an offer that is better than their current situation and, as a result, not seek an cell tower expert before agreeing to the deal.

What’s The “Catch”?

Tower Advantage has reviewed many hundreds of these “better” offers and can find the “catch”. Our experts know the “tricks” that American Tower uses to sign the most profitable leases with their landlords. A signing bonus is a great example of one “catch” that helps them generate incredible profits at the expense of landlords.

Did You Say Signing Bonus?

American Tower will sometimes offer a large signing bonus to its landlords in a cell tower lease renewal. Because most landowners do not know the amount that is being generated on the cell tower, it is often very difficult to gauge whether this signing bonus is fair. As a result, many landlords rush to sign an agreement without understanding what they are losing.

For example, let’s say you are currently receiving $1,000 per month in rent, and American Tower offers you an increase to $1,250 per month plus a $10,000 signing bonus. It may seem like a great deal – you have not only increased your rent, you get an extra lump-sum payment as well. What can possibly be wrong with accepting that deal and why would you need help for a cell tower expert?

What Am I Missing?

The answer is that the correct cell tower expert will know the approximate income that is being generated on the tower. For instance, by knowing that American Tower is making $2,000 in profit on the tower (after your rent payment and expenses) – then you understand that it will only take them five months to recoup the signing bonus ($10,000/$2,000). Now, what if I told you they would have been willing to increase both the rent and the signing bonus with the right representation – and you also would not lose the opportunity?

That is the reason we recommend contacting a cell site lease consultant – like Tower Advantage – today to see if you are making the right deal.

3. Hiring a Cell Tower Consultant Without Legal or Real Estate Expertise

Without the proper expertise, you can create many problems for yourself with an American Tower lease negotiation. Discover the 4 questions to ask before hiring a cell tower advisor.

American Tower Uses Experts to Negotiate

Many times, American Tower will use contractors to negotiate with their landlords. These companies are referred to as lease optimization companies. Examples include firms like Md7, The Lyle Company and Black Dot Wireless. Other times, American Tower will use its own team of professional negotiators in order to obtain the best deals possible.

In any case, you can be certain that they will have the “upper hand” in the negotiation if you don’t select the right cell tower expert to represent your interests.

Legal and Real Estate Experience

In addition to cell site expertise, the experts at Tower Advantage possess both legal and real estate expertise. The Founder and President, Shival S. Bushan, Esq., is a lawyer and real estate broker with more than 20 years of experience. This background provides our clients with the ability to get more out of their American Tower lease negotiation.

Superior “Inside” Information

Plus, since we have helped hundreds – if not thousands – of property owners like you, our experts maintain data on thousands of cell sites across the United States. This information is extremely valuable to our clients when knowing the best parameters for your specific cell tower lease negotiation. For example, we analyze factors such as the traffic a cell tower receives; the tower capacity; the type, quality and amount of any subtenants on the tower; and the overall estimated revenue associated with a specific site.

This allows our experts to not only maximize your your opportunity, but to also best represent your interests.

“I have been a commercial real estate agent for 10 years. Negotiating real estate contracts is what I do as part of the sales process, but negotiating cell tower contracts are a different “animal” entirely.

I was referred to Shival Bushan to see if he could help negotiate the cell tower contract. His expertise was crucial in making sure we did not leave anything out of our agreement – and was well worth reaching out to him. We will continue to reach out to him in the future for any of our cell site issues. – Michael T. – Taylor Properties. [read other testimonials]

Whether you are considering an American Tower lease extension or your are considering selling your lease, one of our experts will be happy to discuss your options – it is an absolutely no-risk, no-hassle, and complimentary consultation.

Don’t regret the call you didn’t make – contact Tower Advantage today for more information.

Contact Tower Advantage today for your free
consultation regarding your offer from American Tower.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

Do you need some helpful tips regarding your AT&T cell site agreement? Maybe you have been contacted you to put an AT&T cell tower on your property? The experts at Tower Advantage can assist you with industry secrets and ways to maximize your opportunity. In addition, the President of Tower Advantage is a licensed attorney who has been in the industry for over two decades.

AT&T Knows How To Make Money

More Than Just “American Telephone and Telegraph”

AT&T is the largest communications company in the world. In recent years, they made massive purchases including DirecTV for $48.5 billion in 2015 Time Warner for $86 billion in 2018. Since their founding in 1885, they have become more than just American Telephone and Telegraph.

Difficult to Comprehend This Amount of Money

In 2019, its revenue exceeded $181 billion dollars. So that amount is easier to comprehend, if you stacked $1 bills end-to-end, they would go around the world over 400 times. In order to continue that type of yearly cash flow, AT&T uses lease experts to negotiate the best lease rates possible for their benefit – not yours.

AT&T’s Lease Negotiators Are Not On Your Side

Their Negotiators Get Bonuses If They Can Convince You To Accept Low Rent/Bad Terms

Almost every lease negotiator that works on behalf of AT&T are paid bonuses for the lower the rent you accept, and for the more tenant-favorable provisions that they secure in the AT&T cell site agreement. As a result, their agents will be looking after AT&T’s interests – not yours.

Scare Tactics Are Often Used So You Make a Hasty Decision

Also, we often find that these negotiators will attempt to rush landlords into making a decision. It is a tactic employed in the hopes to have the landlord accept most of the provisions with little push-back. In addition, it makes the property owner feel as if they will “lose the deal” if they hire an advocate that will cause more back-and-forth with the agreement terms.

You Will Never Lose The Deal Simply Because You Hire a Cell Tower Lease Consultant

We can say with confidence that you will not lose a lease opportunity for hiring a lease expert like Tower Advantage. Just as you would not be expected to represent yourself in court, hiring a well-qualified advocate in the telecommunications industry is no different. Here are just 10 Factors To Consider When Hiring a Cell Tower Lease Consultant.

They Will Try To Persuade You

Of course, telecommunication tenants may persuade you to act by yourself, but that is only because – that way – they have the best chance of getting most of the lease terms they want. Don’t be fooled! The experts at Tower Advantage will listen to all of your goals and concerns to provide you with the best chance for success.

Knowledge Is Power

As we like to say – knowledge is power. We know exactly what provisions AT&T will never agree to delete from their agreements. Alternatively, we know the type of language that AT&T will approve because we have negotiated hundreds of AT&T cell tower leases across the country. Moreover, we have a database of rents for thousands of sites all over the nation. This knowledge provides you with the information you need to make the best decision possible.

Schedule your free initial consultation today with one of our experts.

The Basics Types of AT&T Cell Tower Lease Agreements

There are two basic types of leases, depending on whether a landlord is leasing AT&T ground space for a tower, or leasing them the building and rooftop space for a cell site.

Option and Lease Agreement versus Structure Lease Agreement

An Option and Lease Agreement is used primarily for leasing land from a property owner. Alternatively, the Structure Lease Agreement is used for leasing the building and rooftop – or other structure – from a landlord.

What is an Option?

The “option” portion of the Option and Lease Agreement does not commit AT&T to start paying the rent until they exercise the option. Normally, they will exercise it – which then triggers the first rent payment – after they complete their due diligence to make sure the property meets their needs.

Option Fee

In exchange for AT&T being allowed to “tie up” your property without actually paying rent, AT&T will pay an option fee. The amount they offer is normally far below the amount they will agree to pay. Normally option periods are approximately 12 months with an automatic renewal, for an additional renewal option payment. However, most companies always ask for much more than they need for much less than they want to pay.

What Are The Differences Between The Types of Agreements?

The main difference are the provisions related to the “tower” differences. In an Option and Lease Agreement, AT&T will build and own the structure. In a Structure Lease Agreement, the structure is owned by the landlord – which is the building where the antennas and equipment will be placed. Of course, this is the simple part.

The Differences Are Important

The more complex part is knowing what sections of the lease should be modified to protect the different types of issues that can arise for a landlord. Some of these include equipment modifications and sublease sections. Tower Advantage has that knowledge and can ensure your lease is “rock-solid” when it comes to protecting your rights.

AT&T Cell Site Lease Agreements Normally Have 25 Sections and Are Over 15 Pages Long

Most consultants should not try to negotiate this type of agreement.

Require The Proper Legal Expertise

In order to negotiate a cell site agreement, you must have the proper legal background and credentials. Tower Advantage is not only a cell tower expert, our founder is a licensed attorney. This provides you with the skill-set necessary for your maximum success. Based on our experience negotiating these agreements, we recommend engaging a cell tower expert who can properly address the issues in the lease so you are properly protected.

Many consultants claim to have the proper legal expertise, but when asked about their education or credentials, they fall short. Unfortunately, one of the major mistakes landlords make is focusing simply on the rent and disregarding the other 20+ sections of the lease. This can result in many problems with their cell site tenant and their property for decades.

AT&T’s Attorneys Drafted The Lease

Every single provision in the lease was drafted by an attorney for the benefit of AT&T. So, unless you have an expert with the required legal background – like Tower Advantage – to address it on your behalf, you are at a serious disadvantage.

We have negotiated hundreds of these agreements for the benefit of our clients. From modifying the language related to termination, to ensuring our clients are not left removing an abandoned tower, we know what needs revision in these leases for you protection. Moreover, we have language databases of what AT&T has accepted in the past, and what language they will absolutely refuse to modify.

Join our alumni of clients who were happy they contacted Tower Advantage for their complimentary, no-hassle consultation.

What is Fair Rent For a AT&T Cell Tower Lease Agreement?

AT&T is a billion-dollar company for many reasons. One of those is due to having experts secure great lease rates on their behalf with landlords across the nation. Consequently, AT&T can generate more revenue for every tower they operate in their network.

Fair Rent

What is fair rent? AT&T knows that “fair rent” means one thing to one landlord, and something completely different to another. AT&T’s negotiators understand that most landlords will jump on the idea of getting paid anything for a piece of land that is not generating any income. Similarly, they know that the property owner’s rooftop will not normally generate any revenue – apart from cell site tenants.

Tower Advantage will help you obtain more than just fair rent. It will depend on a variety of factors that we analyze in relationship to your overall goals with the AT&T cell tower lease agreement.

Just Some Factors To Consider

Using our extensive database, along with our vast experience, we know the main reasons why some leases pay more than others. As you can imagine, there are cell sites across the nation, some of which are right next to each other, paying very different rent amounts. Those reason can vary depending on the particular situation. In addition to who the tenant is, the other factors include:

–  the amount of lease area?
–  what type of tower?
–  the type of equipment?
–  how long is the lease?
–  are there any subtenants?

We have reviewed leases with rents paying only $200 per year. Alternatively, we have successfully negotiated others for rent totaling over $10,000 per month. On average, building and rooftop leases in urban areas pay more than tower leases in rural areas. However, that is not necessarily always the case depending on the factors listed above.

Tower Advantage maintains one of the largest databases of cell tower lease rates all around the country. We can use that vast data, along with our expertise negotiating hundreds of leases relating to the factors above, in order to provide you with the best opportunity for success with your AT&T cell tower lease agreement.

Contact Tower Advantage today and we can help you get the most rent for your particular situation.

Contact Tower Advantage today for your free consultation
regarding your AT&T cell tower lease agreement.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

– Do you have questions regarding a cell tower lease buyout and want advice from an industry expert?

– Are you considering selling your lease and want to make sure you get the highest sales price?

– Do you want to ensure you rights are adequately protected by a consultant with the proper legal background?

Having closed over $50,000,000 in lease sale transactions, the experts at Tower Advantage can provide you with a superior level of advocacy that you deserve and require. When securing the largest offers for our clients, we solicit both public and private investors to ensure the most competitive process. This helps ensure you are not leaving any money on the table. In addition, we will negotiate the best language to protect our clients from many unforeseen obstacles.

Please feel free to contact us today for your free initial consultation. We also suggest reading the 10 Factors to Consider When Hiring a Cell Tower Lease Consultant.

What is a Cell Tower Lease Buyout?

This is when a landlord decides to sell his lease along with the rights to receive the future rental income for a certain period of time. This time frame can be in perpetuity, or for some shorter period such as 99 years, 50 years, etc. The buyer will make a lump sum payment – or several installment payments – in exchange for the right to receive the future rental income for that period of time.

What Should You Do When You Have Been Contacted For A Cell Tower Lease Buyout?

First, do not “blindly” believe companies looking to purchase your lease – whether it is your current cell tower tenant or any other third-party buyer. As you can imagine, they are trying to maximize their profit, so the lower they can get you to sell your lease, the more money they can make. That is where having an independent cell tower consultant with the proper legal and business expertise can provide you with the input you need.

Step 1:  Don’t “Blindly” Believe The Companies Looking To Purchase Your Lease – Many of Them Cannot Be Trusted

A buyer who wants you to sell them your lease will often tell you whatever they believe will get you to sell it to them – and quickly! We have heard many examples of these misrepresentations from our clients over the years.

They Will Tell You Anything To Get You To Sell Your Lease

Some companies may try to tell you that you need to sell them your lease because the tower is not going to be there long-term. Ironically, they still want to purchase it despite that fact. Of course, they come up with all sorts of reasons to make you believe it.

They will give you reasons such as they can afford losing the rent if the site was terminated because they own many sites across the nation and it would not affect them. If someone is telling you that you have a “bad apple”, what sense does it make that they want to purchase it? It doesn’t!

Don’t Believe The “Marketing” Line

Other buyers will tell you they can bring you more income in the future if you sell them your lease. They say they will “market” it, but they just need additional land so they can share that additional rent with you. Instead, they are just taking more money out of your pocket.

First, most do not market it since they do not own the actual tower and would not get any benefit with the addition of a new subtenant. Secondly, if a new subtenant needed additional land from you for their ground equipment, you would get 100% of that rent without having to share it with anyone.

Get More Answers

These are quick explanations to complex issues. Consequently, feel free to contact us anytime for your free consultation so we can explain to you the specific reasons, so you do not get misled by these unscrupulous “predators”.

Step 2:  Seek a Cell Tower Lease Expert to Provide You With the Proper Representation

Tower Advantage is not just a cell tower lease expert. We have the legal background that you require in order to properly negotiate the sale of your lease. A lease buyout agreement is written by the buyer’s attorneys to maximize the rights and lessen the obligations of the buyer. We will not simply focus on the economics of the deal, but rather, the entire agreement to make sure that you are adequately protected.

Tower Advantage Has Legal Expertise

A typical cell tower lease buyout includes a letter of intent and/or a purchase and sale agreement; an easement agreement; and several other legal documents. There are many provisions that can negatively affect property owners if they are not sufficiently addressed. Our experts have negotiated hundreds of lease sale transactions and can properly advocate for your rights.

“…Tower Advantage got us an offer significantly higher than the one we had received, even after their fee. The process was made simple for us since Tower Advantage negotiated the purchase offer and closing documents. This saved us time and money since we did not need to hire a separate attorney to ensure that our rights were not being overlooked.” – Pastor Bob L. [read more]

We Have a Unique Way to Solicit the Highest Offers

Tower Advantage will solicit the largest purchase price in the industry by using a “bidding-type” approach. We highlight the most important factors in your lease agreement that will secure the largest prices. With access to more buyers – both public and private – it creates more opportunity for us to create value for you.

We Are Incentivized To Maximize Your Opportunity

Tower Advantage only earns a fee if we secure our clients the largest purchase price for their particular situation. As a result, we are incentivized to produce the best results possible for our clients. Moreover, we can typically get much higher prices with the same companies that have already contacted you, so you have nothing to lose. To date, our experts have used this approach to successfully complete over $50,000,000 in lease buyout transactions.

Contact us if you would like us to provide you with a free review of your situation. As we like to say, we would be happy to provide you with the Tower Advantage.

Some Reasons Landlords Consider a Cell Tower Lease Buyout

There are many reasons it may make sense to sell your cell site lease. Tower Advantage has put together some basic considerations below which can help you determine if selling your lease is the correct decision. You can also check out the following article that provides more information on these 10 Benefits of a Cell Tower Lease Buyout:

What Are the Other Important Considerations in Selling Your Lease?

A cell tower lease buyout is a complex transaction. There are many important ways that our experts will provide you with superior value as compared to others in the market. Below are just some of the questions that we will be happy to answer for you in more detail when you contact us for your free initial consultation:

What Is My Cell Tower Lease Worth?

A buyer that is looking to purchase your lease will base its worth on a variety of key factors.

Primary Factors

The primary factors include the current rent, the amount and time period of future rent increases (aka escalators), the lease expiration date, and the potential for sharing in subtenant rent. Of course, there are other factors as well, but these are some key considerations that buyers will use to discern the value they place on the asset.

Length of Purchase Term

Typically, the longer the purchase term, the higher the value as well. Terms can range from perpetuity, to less than 20 years. However, if you are looking to maximize your dollar amount, the longer is normally better. That is because the more time the buyer has to receive the rental income into the future (assuming cell towers are still needed), the more money that they will pay you for the cell tower lease.

Tower Advantage Can Maximize The Value

Since Tower Advantage completes millions of dollars of cell tower lease buyout transactions on a yearly basis, our clients benefit from that extensive transactional experience. For instance, we can often secure purchase terms for shorter time periods, but at the same price as what you could obtain for 99 years or longer. Although you may not be around that far into the future, it can provide your heirs with valuable income far sooner than they otherwise would receive it.

Should I Consider an Installment Buyout Offer?

At first glance, installment offers can appear that you will actually get more for the sale of your cell tower lease. Yet, you have to ask yourself what is the reason the same buyer would offer more for the same rights. When you understand the answer, it makes sense why the lump-sum buyout is likely the better choice.

The “Real” Dollar Amount Is Less With an Installment Offer

The answer is that it comes down to basic economics. When calculating the “real” dollar amount, a buyer is considering interest, inflation, and its use of the money until it has to pay you the total sales price. After factoring in those issues, the actual value of the installment amount is normally less than a one-time payment at the close of the transaction.

Contact Tower Advantage and we will be happy to review the installment offer that you have received to provide you with an in-depth analysis of your options.

How does a Right of First Refusal (ROFR) Affect My Value?

Many cell site leases contain a provision entitled a right of first refusal (ROFR). This ROFR allows your cell tower tenant to match any offer you receive in the marketplace. It seems harmless enough, right?

Many Buyers Won’t Make Purchase Offers On Leases With ROFRs

There is an “unspoken” agreement between many buyers in the industry to avoid making offers on cell site leases that contain ROFRs. But why exactly? The reason is one of reciprocity.

Those buyers do not want their competitors to bid on their cell site leases with ROFRs, and they won’t bid on their competitors. Cell tower tenants want to avoid paying a premium for their own leases, especially if they do not have to. However, they will do so in order to protect themselves from competitors that may subject them to future rent “hikes” or less favorable lease provisions. Consequently, by some buyers agreeing not to make offers on their competitor’s leases that contain ROFRs, the property owner will get less offers for the “real” value.

That Doesn’t Stop Tower Advantage From Securing The Highest Offer

Tower Advantage has access to every type of investor in the marketplace – both public and private. By having this network, we can secure the highest price for your lease regardless of whether it “offends” your cell tower tenant. That way, you do not have to worry about receiving less than you should for your valuable asset. Without this network at your disposal, most landlords can be certain that they are leaving “money on the table”.

For more information on ROFRs, please feel free to contact us anytime.

Am I Selling My Land When I Sell My Lease?

No – a cell tower lease buyout is not a sale of the entire property. At a minimum, the purchaser of the lease will receive only an assignment of your cell tower lease. If the landlord wants the highest price possible, the buyer will need an easement as part of the purchase (discussed below).

Is an Easement Required?

An easement is not necessarily required, although without it, the lease buyout company is subject to losing their investment. An easement is a right to use the property for a specified purpose. Buyers are purchasing a telecommunication easement to operate and access the property where the cell tower is located. By having one, the buyer can make sure that if the current lease expires or is terminated, they can try to get another tenant on the property. Without it, as soon as the current lease is over, so is their investment.

Does a Cell Tower Lease Buyout Devalue My Property?

It depends on a variety of factors, including the type of property that you own. Many times the sale of your lease can actually increase the value. This is because a buyer of the entire property will not normally put the highest value on the cell tower income. By “separating” the lease from the rest of the property, lease buyout companies can pay you a premium for that asset whereas a normal buyer would not.

Do I Need an Attorney To Review My Cell Tower Lease Buyout?

An attorney is never required, even – as they say – when you are representing yourself in court. Tower Advantage was founded by an attorney who has been helping property owners for over 20 years. We provide the legal expertise that you require when considering a cell tower lease buyout.

Most lease buyout agreements contain over 30 sections drafted by the buyer’s attorneys. Since most consultants do not possess the necessary skills, credentials, or licensing, they cannot help you negotiate these agreements. Please contact us today to make sure that you are getting the full-service representation that you require.

What Do Interest Rates Have To Do With My Sales Price?

As many of us are aware, when interest rates are low, the cost of capital is less expensive. Conversely, when interest rates are high, the cost of capital is more expensive. Due to the Federal Reserve’s federal funds rate continuing to be at historic lows, purchase offers for cell tower leases have been at historic highs. This will not always be the case. As interest rates rise, the offers will tend to go in the opposite direction as the cost of capital rises.

Can I Do a 1031 Exchange?

Yes, you can. The term 1031 Exchange is defined under Section 1031 of the IRS Code. A 1031 Exchange allows a taxpayer to exchange one investment for another while deferring the tax associated with the sale. In order to learn more about how we can help you structure your transaction to include a 1031 Exchange, please contact us today.

Am I Missing Anything?

There are many things to think about when you are considering a cell site lease buyout. We recommend that you seek a qualified expert prior to moving forward with any agreement related to your cell tower. The experts at Tower Advantage will be happy to make sure you are not missing anything!

Contact Tower Advantage today for your
free consultation on a cell tower lease buyout.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

Have you been approached for a Verizon cell tower lease agreement and need some helpful advice? Do you need the proper legal and telecommunications expertise to guide you in the right direction? Or, do you simply want to know more about a Verizon cell site agreement?

Feel free to contact Tower Advantage today for your complimentary initial consultation. Our founder is an attorney, and an expert in the cell site industry, to ensure that you get the answers you need.

Some Basic History on Verizon

Verizon Communications is the second largest wireless service provider in the United States behind AT&T. The company’s corporate headquarters are located in New York City, and their operational headquarters are located in New Jersey. Founded in 2000, Verizon gained popularity in the U.S. for its “Can You Hear Me Now?” advertisements.

In 2019, its revenue exceeded $131 billion dollars. To put that in perspective, if you stacked $1 bills on top of each other, it would reach over 10,000 miles. That’s is approximately three-and-a-half times as long as the distance from Los Angeles to New York.

As expected, they use experts in all aspects of their business to maximize their profit, including when negotiating their cell site leases.

Verizon’s Site Acquisition Agent is Working For Them – Not You

Site acquisition agents are paid to locate potential properties for the telecommunication companies that hire them. As part of their compensation, they get bonuses for the lower the rent and the better the terms for their clients.

Consequently, agents will not give you any information that will benefit you in the negotiation. Moreover, they often try to get you to move quickly or risk losing the deal. Do not fall for that tactic since you need to make sure you are not “operating in the dark”.

Feel free to contact Tower Advantage for your free initial consultation, including Verizon cell tower lease rates. Also, here are 10 Factors To Consider When Hiring a Cell Tower Lease Consultant.

There Are Two Basic Types of Verizon Cell Tower Lease Agreements

There are two basic kinds of agreements, depending on the type of property. For land, Verizon will normally use an Option and Land Lease Agreement. For rooftops, the company will use a Building and Rooftop Lease Agreement.

Option and Land Lease Agreement

An option contract is one that gives Verizon the choice on whether to commence the lease agreement. Only if they “exercise the option” is when rent must be paid. In exchange for this right to “hold” the land for a specific period of time, Verizon should pay you an option fee, but the amounts are almost always lower without the proper representation. We recommend negotiating the option fee to be the same amount of the starting rent.

Normally, option periods will be six months to 12 months. Most of the time, Verizon will include an automatic option renewal period for the same amount of time. If they use a renewal option, they should pay an additional option renewal payment. Note, all of these time periods and payment amounts can be negotiated – and should be negotiated to maximize your rights.

The Option and Land Lease Agreements and the Building Rooftop Lease Agreements normally have over 30 separate sections each. Remember, these were written for the tenant’s benefit – not yours – so we recommend getting the proper cell tower consultant – like Tower Advantage – to guide you through all of the legalese.

Building and Rooftop Lease Agreement

As mentioned above, this type of agreement is very similar. The main difference involves the fact that you own the “tower” – which is the building and rooftop – not them.

In a land lease agreement, normally, the cell site tenant owns the tower structure. In that case, Verizon has more leverage when it comes to negotiating any sublease provision because they are not necessarily leasing any additional land from you. Yet, in a building and rooftop lease, the landlord owns the structure so the landlord has more leverage to request, and receive this type of additional income.

Also, any modifications to the structure have the potential to cause damage to – or interference with – the guests, residents, businesses, and/or tenants in the building. Consequently, those associated lease provisions should be “air-tight” when dealing with these possible issues. Now, let’s address the rent.

What is Fair Rent For A Verizon Cell Tower Lease Agreement?

Verizon is a billion-dollar telecommunication company for many reasons. One of those reasons is because their experts have secured great lease rates with landlords across the country. As a result, Verizon can generate more revenue per tower they own and operate.

Fair Rent

Verizon knows that “fair rent” is a subjective term. If a landlord is not earning anything for their rooftop, and they are unlikely to rent it out to any tenant other than a telecommunication company, then fair rent could be any number above zero. Similarly, if a property owner is not using the land that Verizon is looking to lease, or the land is generating less than the – let’s use $750 per month – they are offering, then what is the best way to determine fair rent? Below. we will provide you with the important variable that will lead to the answer.

Factors To Consider

The answer is by using the experience and data of a cell tower lease expert that has the information necessary to calculate it for you. There are thousands of cell sites across the nation, and cell towers right next to each other often pay very different amounts. The reason can vary, but in addition to who the tenant is, other factors include:

–  how much area is being leased?
–  what type of tower is being built?
–  what equipment is being used?
–  how long is the lease?
–  are there any subtenants?

We have seen rents that pay a few hundred dollars per year, to over $15,000 per month. Rooftops normally pay more than land leases, but that is not necessarily always the case depending on the factors listed above.

Tower Advantage maintains one of the largest databases of cell tower lease rates all around the country. We can use that vast data, along with our expertise negotiating hundreds of leases relating to the factors above, in order to provide you with the best opportunity for success with your Verizon cell site lease agreement.

Contact Tower Advantage today and we can help you get the most rent for your particular situation.

Verizon Cell Site Lease Agreements Typically Have Over 35 Sections and Are Over 15 Pages Long

From indemnification provisions, to rights of first refusal – from removal and restoration clauses, to tax provisions – Verizon cell tower lease agreements are full of language that needs to be addressed or it can potentially cause you headaches in the future.

Based on our experience negotiating these agreements, we recommend engaging a cell tower expert who can properly address these issues so you are properly protected. Every single provision in the lease was drafted by an attorney for the benefit of Verizon, so unless you have a consultant with the required legal background – like Tower Advantage – to tackle these on your behalf, you are at a severe disadvantage.

Many consultants may claim to have the proper expertise, but when you ask them about their legal education or credentials, they fall short. Unfortunately, one of the biggest mistakes landlords make is focusing on the rent and disregarding the other 30+ sections of the lease than can cause problems with their property for decades.

Join our alumni of clients who were happy they contacted Tower Advantage for their complimentary, no-hassle consultation.

Contact Tower Advantage today for your free consultation
regarding your Verizon cell site lease agreement.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

As you may have seen, there are many different types of cell towers that exist. This article will provide you with more information on the various kinds that you can find in the world today.

---

Monopole

A monopole is a cell tower that is approximately 50 feet to 200 feet in height. It is one large pole and it is one of the most common tower structures. As with all types of cell towers, a monopole can have more than one wireless carrier transmitting from it.

 

---

Lattice Tower

A lattice tower is commonly referred to as a self-support tower and is usually between 200 feet to 400 feet tall. These are easy to spot since the framework consists of support bars that cross. The Eiffel tower is probably the most famous example of a lattice tower.

 

---

Guyed Tower

A guyed tower is the cell tower structure that can reach the highest with wires that anchor it from different heights to the ground. These tower are normally start at 300 feet and can reach well above 1,000 feet. Due to the anchoring required, these towers require larger areas of land.

 

---

Stealth Tower

The stealth cell site is one that has many variations, including towers that look like trees, flag poles, etc. In the example to the left, the antennas are concealed in the top floor of this clubhouse building inside the dark windows. Many municipalities now require stealth towers to minimize the aesthetic problems that towers can create.

 

---

Stealth Tower (Broad-Leaved Tree)

This stealth tower is designed as a broad-leaved tree to camouflage the antennas. It is very difficult to distinguish the transmitting equipment from the rest of the structure on this type of tower. With any stealth tower, there also needs to be ground equipment that is normally protected in some type of structure, whether a shed or small building.

 

---

Stealth Tower (Palm Tree)

The stealth cell tower designed to look like a palm tree can be seen primarily in the southwest United States. Although the these particular types of tree towers do not hide the antennas as well, unless you are looking for them, they still blend in to the surroundings fairly well.

 

---

Stealth Tower (Pine Tree)

The picture to the left is an example of a stealth tower built to look like a pine tree. Since these trees have “leaves” almost the entire length of the tree, this type of tower can also have more than one wireless service provider’s antennas. However, the tree pictured has only one set of antennas which means only one cell tower tenant.

 

---

Stealth Tower (Cactus)

In addition to the other types of camouflaged cell towers designed to look like trees, they can also be made to look like a cactus. The antennas are on the inside of the structure so they are not visible at all. Sometimes, the only way you would recognize them as a cell tower is because they have a fence around their base.

 

---

Stealth Tower (Water Tower)

Yet another type of stealth site is one that is built to look like a water tower. The bottom portion is built with a four-sided lattice-type structure. The antennas are hidden inside the water tower portion so the cannot be seen as in some other stealth structures. Again, the base of the tower will have a fence, but so do most actual water towers.

 

---

Stealth Tower (Flag Pole)

Cell towers can also be built to look like flag poles. Although they are thicker than a regular flag pole, they are very difficult to notice as being actual cell sites. The antennas are housed completely within the structure and, the best part, an American flag is flapping in the wind on the outside.

 

---

Stealth Tower (Signs)

Cell tower antennas can also be placed within the structure of signs. In the example on the left, the supporting pillars are made to conceal the cell tower equipment. Many of these types of cell sites can be seen next to busy highways and freeways.

 

---

Light Pole

If you have ever been to a city park, or a high school football game, you have seen these kinds of cell towers. There are also versions that are built on street light poles as well. The best part is that these structures are multi-functional and can provide schools and municipalities with extra revenue.

 

---

Contact Tower Advantage for more information on the
various types of cell towers and for your free consultation.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

What are the 2020 average cell tower lease rates? This is a common question that we get asked.  As you can imagine, the answer is based on a variety of factors – some of which you can control and others you cannot.

Tower Advantage possesses the knowledge, expertise, and professionalism to negotiate the best lease possible on your behalf. Moreover, we do not just protect your economic rights, we look at the entire lease to ensure you are fully-protected.

There is a wide range of cell tower rent estimates on the internet. If you are looking for Verizon lease rates, AT&T ground lease amounts, or any other rental figures, you have come to the right place. However, there is no simple answer to the question about how much rent you should be getting paid. That answer depends on all of the facts surrounding your particular situation. Below are some of the main factors that we use as a cell tower expert:

Factors for 2020 Cell Tower Lease Rates:

1. Location

Where is the cell tower located?

The location of the cell tower is important to determine its value. A cell tower lease in a busy, major metropolitan area will pay more than a lease in a rural area with not nearly as much traffic. The reason for this is simple – demand. More users in a specific area that are accessing the site make it more valuable to the network.

In addition, if a cell tower is at a higher altitude as compared to the surroundings, or is simply taller than others in the vicinity, there may be more potential value in the lease. This is because it can potentially service a larger coverage area and may also have the ability to generate more revenue for the tenant. There is also the possibility that the more space at the site, whether on the tower or on the building, additional wireless subtenants will add to its value.

In many areas, the zoning laws may also play a key role in the value of any particular cell tower lease. If zoning regulations prohibit certain types, or have limitations on uses, it could either help – or hurt – a landlord depending on the situation.

2. The Cell Tower Tenant

Who is your cell tower tenant?

Normally, the cell tower tenant is a tower company (e.g., Crown Castle) or a wireless carrier (e.g,. Verizon). The type of cell tower tenant helps determine the value of the site as it relates to their overall network. Consequently, there may be different limits to the rent amount based on budgets, alternative locations, opportunity cost, etc.

Over the last two decades, the experts at Tower Advantage have worked with every type of cell tower tenant and negotiated every type of lease. As a result, we can provide you valuable insight into your particular opportunity, whether you are looking for ground lease rates, rooftop cell site information, or anything else.

3. The Owner of the Cell Tower

Who owns (or manages) the cell tower?

This is, of course, in contrast to the owner of the property – which is you, as the landlord. If the owner (or manager) of the tower is a tower company (e.g, American Tower), it can often lead to a very different negotiation in comparison to a wireless carrier (e.g, AT&T). Suffice it to say that every telecommunication company works differently, and each has different parameters when it comes to negotiating cell tower leases.

Unfortunately, many landlords contact us after they have already signed their lease to inquire about all of their options. At that point, it’s too late!  Instead, join our alumni of clients to whom we have provided expert representation.

4. Whether There Are Any Cell Tower Subtenants

Is there one – or more – wireless subtenants on the tower?

In addition to the main tenant, if there are subtenants with their equipment on the tower (known as co-location), the cell site lease will be more valuable. Each subtenant will pay the tenant additional income, but most of the time, the property owner does not share in that additional revenue.

Many landlords ask us if they can receive some of the sublease rent associated with those additional carriers. Again, the answer will be dependent on many variables. These include: (1) how much rent, and sublease rent, is currently being paid; (2) who are the subtenants; (3) who has the best leverage in the negotiation; (4) opportunity cost; etc.

Schedule your free consultation today.  Make sure you are not leaving “money-on-the-table” when it comes to your lease negotiation.

5. New Construction versus an Existing Cell Tower

Is this lease for a new tower being built, or is it for one that has been in existence for several decades?

As can be expected, typically, you have more leverage when negotiating a cell tower lease that will soon be expiring versus one where the cell tower has not been built yet. That is because, for an existing lease, the tenant has to take into account potential relocation and decommissioning costs. In contrast, for a new tower, there are minimal costs for a wireless carrier to look at your neighbor’s property and proceed with them instead. However, this is a broad generalization and is not always the case.

As an example, we often help property owners increase their rent by more than 100% of the amount they were initially offered on a new lease. In fact, this is even when the cell tower company has other options nearby to build the site. One reason is because our experts were once on the other side of the negotiation table. By previously representing the billion-dollar telecommunication companies, we know what to look for in a cell tower lease opportunity.

Alternatively, cell sites are relocated when the long-term financials do not make sense for its continued operation. The tower companies and wireless carriers use experts to negotiate their leases so they can get the best lease possible. That’s the reason you should have the same expert representation when trying to negotiate your 2020 cell tower lease rates.

Contact us today if you are negotiating a brand new lease, extending a lease, or if you just need some objective feedback.

Contact our experts at Tower Advantage
for your free consultation on cell tower lease rates.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com